News Corp Revenue Falls Short on Publishing Challenges
CNBC Media and Entertainment Reporter
News Corp reported fiscal fourth-quarter revenue fell six percent to $8.4 billion from $8.96 billion a year ago. That was short of analyst expectations for $8.7 billion. Adjusted earnings per share for the media giant were 32 cents, right in line with projections. Looking forward to the company’s next fiscal year, News Corp projects high single digit to low double digit percentage growth.
News Corp shares fell in after-hours trading.
CEO Rupert Murdoch was not on the call, instead COO Chase Carey took the helm, with Rupert’s son James Murdoch, the company’s Deputy Chief Operating Officer, also participating.
The company’s plan to spin off its publishing business looks like it will come at a high cost — nearly $3 billion this quarter. The quarterly results included a $2.9 billion pre-tax impairment and restructuring charge, primarily related to the Company’s publishing business. There’s also a $57 million charge related to the costs of “ongoing investigations initiated upon the closure of ‘The News of the World.’”
The company’s cable division continues to be its strongest, showing 15 percent growth in revenue and 26 percent increase in operating income. Affiliate fees rose 19 percent thanks to successful affiliate renewals and advertising progress.
There’s no sign of European weakness in the numbers either. Improving markets and viewership trends in Latin America drove up international ad revenue 13 percent while domestic cable channels ad revenue grew 9 percent.
-By CNBC's Julia Boorstin
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